As someone who would consider themselves to be competent at the basics in the kitchen but far from a Michelin star chef, when it comes to cooking I am the type of person who prefers to follow a recipe for a new dish in a methodical order and with the ingredients prepped where possible before starting.
For others who are either more confident or creative in the kitchen they may feel ok without following a specific recipe in order, prepping the ingredients or feeling that they can make their own tweaks to suit their own tastes.
Now this got me thinking about having a recipe for success when it comes to your finances for people to follow, but with the ability for their life to be creative and personalised to taste. On reflection, I think that is entirely reasonable to say that there is a recipe for success and it looks something a bit like this:
A written down recipe with timings and ingredients needed alongside a timer (a clear strategy and knowledge of when you want and need to take action) – to give you the confidence and reassurance to move forwards feeling in control along the way
The correct quantity and quality of hearty and healthy ingredients (the building blocks of the tax wrappers and underlying holdings to meet your needs) – to give you the substance you need to satisfy your hunger and meet your nutritional needs.
Herbs and spices (life goals and experience aspirations) – adding in something to make life interesting and exciting whilst also personalised to your taste.
The right level of heat (the correct investment approach) – to allow things to mature over time without constantly needing to stand over them.
Cooking for a long time (long time horizon) – allowing time for flavour to build and for things to cook thoroughly.
Plain flour to hand just in case (personal insurance and an emergency fund) – something to have nearby in case things go off track
A professional chef (a financial professional) – someone there who can assist, monitor and be another set of eyes for when you are busy doing something else.
With these things in place it can give you the recipe for financial success. That’s not to say that things always go to plan, but that even if they don’t you are prepared and have set yourself up in the best possible way.
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